Government plans Rs2,000 monthly relief for motorcyclists

Government plans Rs2,000 monthly relief for motorcyclists

The government has approved a proposal to provide monthly financial relief to motorcyclists as soaring fuel prices continue to put pressure on household budgets.

Prime Minister Shehbaz Sharif has given the go-ahead for the relief scheme, which will initially run for three months. Officials said the government could extend the programme depending on available funds and developments in the Middle East.

According to senior officials, the government is considering a monthly payment of around Rs2,000 for motorcycle owners to help them cope with higher petrol prices. The prime minister will make the final decision on the amount.

The proposal comes as the Finance Ministry has rejected calls from some cabinet members to reduce the petroleum levy and use part of the Rs430 billion contingency allocation to limit the impact of rising fuel prices.

Budget documents show that the government allowed Rs113 billion from the contingency fund to lapse during the previous fiscal year instead of using it for emergency relief.

The government currently collects Rs106 per litre in taxes on petrol, accounting for around 28% of its retail price. Taxes on diesel stand at Rs101 per litre, or roughly 25% of the price.

Officials said the proposed Rs2,000 payment would cover only about five litres of petrol at current rates. Petrol is currently priced at Rs376 per litre, while diesel costs Rs403 per litre following sharp increases this week.

The government raised petrol prices by Rs30 per litre and diesel prices by Rs25 per litre, intensifying public criticism over fuel costs.

Petroleum Minister Ali Pervaiz Malik had earlier proposed reducing the petroleum levy to Rs50 per litre and setting an annual revenue target of Rs1 trillion.

Critics have argued that restricting relief to motorcyclists would not fully address inflationary pressures, as small-car owners and public transport users are also facing higher transportation costs.

The government plans to distribute the compensation through a digital mechanism being developed by the Ministry of Information Technology.

“We are finalising the details to ensure relief as per the prime minister’s directions,” Information Technology Minister Shaza Fatima Khawaja said.

Meanwhile, Jamaat-e-Islami has announced a long march towards Islamabad on September 20 to pressure the government to reduce the petroleum levy and provide relief to consumers.